In 2004 popular live music venue the Old Railway, in Curzon Street, was demolished as part of the Eastside development. And a year earlier the Fiddle & Bone, in Sheepcote Street, was closed.

The Carling Academy, in Dale End, is also under threat with plans to build shops and apartments, under the #530 million Martineau Gallery development.

The planning committee, which met yesterday, also said the venue would be a valuable addition to culture in the city. Coun Peter Douglas Osborn (Con, Weoley) said: "I recognise this as a cultural asset for the city centre which is essential at the moment."

There was one letter of objection from a nearby business. But there were nine letters in support of the plan in which people said the venue will be a showcase for live music.

Approval for the plans was given provided it meets certain conditions which include matching building materials for a planned extension, with the existing building.

The club, which is expected to take on about 15 staff, has also been told it can only operate within the agreed hours.

The applicant Lee McDonald, of Snead Lane, Walsall, was given a time-limit of three years to convert the warehouse.